Nvidia develops China-specific AI chips amid tightening US export controls
Despite initial weak sales, Nvidia is now on track to sell over 1 million H20 chips in China this year, generating more than $12 billion.
According to sources, Nvidia is developing a version of its flagship AI chips for the Chinese market to comply with US export controls. The new chip, part of the ‘Blackwell’ series unveiled in March, is expected to be produced later this year. The ‘B200’ model in this series significantly outperforms its predecessor in tasks like chatbot responses. Nvidia is collaborating with its major Chinese distributor, Inspur, to launch this chip, tentatively named the ‘B20.’
In response to tighter US export controls introduced in 2023 to prevent advancements in Chinese supercomputing, Nvidia has created three chips specifically for China. Despite initial setbacks with the H20 chip, sales have surged, with projections of over 1 million units sold in China this year, amounting to over $12 billion. These developments highlight Nvidia’s strategic efforts to maintain its market presence amidst growing competition from Chinese firms like Huawei.
As the US continues to enforce and potentially expand semiconductor-related export restrictions, Nvidia’s actions reflect the broader impact on the global chip industry. The Biden administration’s plans to implement stricter controls on AI technology and efforts to influence policies in other major tech-producing countries underscore the ongoing geopolitical tensions in the semiconductor sector.
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